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please help me out 5. Lindy Corporation started operations in 2022 and leases its retail space. The lease is for 20 years with annual payments
please help me out 5. Lindy Corporation started operations in 2022 and leases its retail space. The lease is for 20 years with annual payments of $98,491 starting on January 1, 2022. Using a 9% discount rate, the PV of the lease payments on January 1, 2022 was $980,000 - equal to the FV of the property at that time. Lindy accounted for the lease as a finance lease from inception using ASC 842 . Lindy uses S-L depreciation for all its assets and its income tax rate is 25%. The following journal entries had been made in 2022 with respect to the lease: However, Lindy's auditor believes that real estate leases such as these should be accounted for as an operating lease and discovered the error after the books were closed sometime in 2023 . Write the journal entry to correct the error in 2023
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